Title 37, Pay and Allowances of the Uniformed ServicesRelease 119-110

§329 Incentive Bonus: Retired Members and Reserve Component Members Volunteering for High-demand, Low-density Assignments

Title 37 › CHAPTER 5 — SPECIAL AND INCENTIVE PAYS › SUBCHAPTER I — EXISTING SPECIAL PAY, INCENTIVE PAY, AND BONUS AUTHORITIES › § 329

Last updated Sep 22, 2026|Official source

Summary

The Secretary of Defense can pay a bonus of up to $50,000 to a retired or former member of the Army, Navy, Air Force, or Marine Corps, or to a reserve member not on active duty, if that person signs a written agreement to return to active duty for a set time in a high-need or other critical military job. The bonus can be paid when the member starts active duty or in yearly payments chosen by the Secretary. The Secretary can also create other incentives, but must use a written agreement for them and send a report to the congressional defense committees at least 30 days before first offering a new incentive (the committees are defined in section 101(a)(16) of title 10). The bonus or incentive is extra pay on top of any regular pay. A member who gets one cannot be promoted while doing the covered assignment. If the member does not finish the agreed time, they must repay under the rules in section 303a(e). The Secretary may write rules to run the program. No new agreements can be made after December 31, 2010. High-demand, low-density military capability: a combat, support, or job area the Secretary finds seriously short of people, equipment, or money for needed missions.

Full Legal Text

Title 37, §329

Pay and Allowances of the Uniformed Services, Source: USLM XML via OLRC

(a)Incentive Bonus Authorized.—
The Secretary of Defense may pay a bonus under this section to a retired member or former member of the Army, Navy, Air Force, or Marine Corps or to a member of a reserve component of the Army, Navy, Air Force, or Marine Corps (who is not otherwise serving on active duty) who executes a written agreement to serve on active duty for a period specified in the agreement in an assignment intended to alleviate the need for members in a high-demand, low-density military capability or in any other specialty designated by the Secretary as critical to meet wartime or peacetime requirements.
(b)Maximum Amount of Bonus.—
A bonus under subsection (a) and any incentive developed under subsection (d) may not exceed $50,000.
(c)Methods of Payment.—
At the election of the Secretary of Defense, a bonus under subsection (a) and any incentive developed under subsection (d) shall be paid or provided—
(1)when the member commences service on active duty; or
(2)in annual installments in such amounts as may be determined by the Secretary.
(d)Development of Additional Incentives.—
(1)The Secretary of Defense may develop and provide to members referred to in subsection (a) additional incentives to encourage such members to return to active duty in assignments intended to alleviate the need for members in a high-demand, low-density military capability or in other specialties designated by the Secretary as critical to meet wartime or peacetime requirements.
(2)The provision of any incentive developed under this subsection shall be subject to an agreement, as required for bonuses under subsection (a).
(3)Not later than 30 days before first offering any incentive developed under this subsection, the Secretary shall submit to the congressional defense committees a report that contains a description of that incentive and an explanation why a bonus under subsection (a) or other pay and allowances are not sufficient to alleviate the high-demand, low-density military capability or otherwise fill critical military specialties.
(4)In this subsection, the term “congressional defense committees” has the meaning given that term in section 101(a)(16) of title 10.
(e)Relationship to Other Pay and Allowances.—
A bonus or other incentive paid or provided to a member under this section is in addition to any other pay and allowances to which the member is entitled.
(f)Prohibition on Promotions.—
The written agreement required by subsections (a) and (d) shall specify that a member who is paid or receives a bonus or other incentive under this section is not eligible for promotion while serving in the assignment for which the bonus or other incentive is provided.
(g)Repayment.—
A member who does not complete the period of active duty specified in the agreement executed under subsection (a) or (d) shall be subject to the repayment provisions of section 303a(e) of this title.
(h)High-Demand, Low-Density Military Capability.—
In this section, the term “high-demand, low-density military capability” means a combat, combat support or service support capability, unit, system, or occupational specialty that the Secretary of Defense determines has funding, equipment, or personnel levels that are substantially below the levels required to fully meet or sustain actual or expected operational requirements set by regional commanders.
(i)Regulations.—
The Secretary of Defense may prescribe such regulations as the Secretary considers necessary to carry out this section.
(j)Termination of Authority.—
No agreement under subsection (a) or (d) may be entered into after December 31, 2010.

Legislative History

Notes & Related Subsidiaries

Statutory Notes and Related Subsidiaries

Effective Date

Pub. L. 109–364, div. A, title VI, § 621(e), Oct. 17, 2006, 120 Stat. 2255, provided that: “No agreement may be entered into under section 329 of title 37, United States Code, as added by subsection (a), before October 1, 2006.”

Reference

Citations & Metadata

Citation

37 U.S.C. § 329

Title 37, Pay and Allowances of the Uniformed Services

Last Updated

Sep 22, 2026

Release point: 119-110